Mobile Entertainment Service Market to Increase threefold to $64bn by 2012 . Music, games and mobile TV will be the major contributors to the global mobile entertainment market which will rise ??to more than $64 billion by 2012. Other mobile entertainment sectors include User-generated Content, Gambling, Adult and Infotainment.
Mobile music will remain the largest single sector of the mobile entertainment industry over the next five years. Revenues from music will ??to $17.5 billion in 2012, bolstered by the increasing availability of full-track download and streamed services, the former in both paid-for and rental formats.
Likewise, mobile games will retain its second-ranking in terms of end-user generated revenues: boosted by rapid growth in mass market "casual" gaming, revenues are expected to rise ??to nearly $16 billion in 2012.
Among next generation technologies, mobile TV will gain more and more momentum, as mobile users get lots of useful content including information, films and other entertainment related content on their mobiles. Many mobile network operators worldwide have rolled out commercial mobile TV services already, and consumers are becoming more discerning in their demand. The number of mobile TV users in the Asia Pacific region is expected to be around 25 m by the beginning of 2009. While India has already emerged as the fastest growing telecom market in the world, ??mobile TV will generate additional revenue stream for service providers and content providers. Though the number of triple-play services users will be less than simple voice and data users, the revenue generated by mobile TV will be very high as mobile TV services will be costlier than the simple services. Various stakeholders, including service providers, content providers, and advertisers benefit from service fees, content fees, advertising and paid interactions such as games, videos, and seasonal greetings. Mobile TV ??should see the market rise ?to $11.9 billion in 2012
According to ?Dr Windsor Holden, "With revenues from voice services declining and messaging revenues flat lining, last year finally saw a number of more sophisticated entertainment services begin to fulfill their potential and redress the balance. With more widespread penetration of 3G handsets ? or entertainment-focused 2.5G handsets like the iPhone ? there is likely to be a much greater surge in both the adoption and overall usage in rich media services."
Other findings ??include:
? Regulations and prohibitions will limit opportunities in the adult and gambling sectors, although ??restrictions on gambling services ??will ease in the medium term
? China and the Far East will remain the largest regional market for mobile entertainment throughout the period ?, with revenues rising ?to nearly $21.3bn by 2012
? Entertainment service adoption remains constrained by difficulties with the user interface, network speed and coverage and the excessive cost of data services
On the other hand, The world?s first Mobile TV, SDMB, was launched in 2004 followed by TDMB in 2005 with the hope of rapid change of user habits to so that broadcasting on a mobile device would become a popular affair.
The initial results in Korea (as they were in Europe in the 2006 ? 2007 timeframe) were not very encouraging.
In the Korean Case, even though DMB viewers are projected to be more than 30 m by 2012, the related operators are still operating the DMB service at a loss.
The unsatisfactory business performance can be traced to :
1. Weak revenue model
TDMB is solely based on Advertising revenue (ie. A clear television business model) but because of the limited viewer base is unattractive as a marketing medium for advertisers. ?
2. Poor contents
Mobile TV is a personal media, for which viewers watch only in specific situations such as in the subway etc. But the TDMB players are mostly terrestrial broadcasters retransmitting unoriginal or syndicated content. Attempts to produce original material suited or targeted for mobile media failed to produce the required economies of scale which in turn attracted less viewers and entered a negative spiral (or a catch 22). ?
3. An unbundled bundled mess
Attempts were made to publish bundled services (such as navigation) with the core offering (broadcast content). But inconsistent strategies non coherent diverging strategies by the parties involved resulted in an ineffective incoherent strategy which led nowhere.
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